Magnate Finance’s $6.4M scam linked to Solfire and Kokomo rug pulls

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  • Magnate Finance rug pull is connected to Solfire and Kokomo Finance scams, blockchain sleuths say.
  • The deployer address of the Base-based protocol was the same in the $4.8 million and $5.5 million scams respectively.

On-chain sleuths have linked the deployer address of Magnate Finance, the DeFi protocol on Base that just rug pulled with $6.5 million worth of user assets.  

According to BeosinAlert, a Web3 real-time risk alert platform, the deployer address of Magnate Finance is connected to two previous rug pulls – a $4.8 Solfire scam executed in January 23, 2022 and the $5.5 million rug pull of Kokomo Finance that occurred on March 27, 2023.

The three rug pulls netted the scammers a total of $16.7 million, BeosinAlert X’d (tweeted) on Friday.

Magnate Finance rug pull

Magnate Finance was a lending and borrowing protocol on Base, a layer-2 platform developed by Coinbase. Concerns about a potential exit scam by the protocol’s team was noted by on-chain sleuth ZachXBT, who alerted the crypto community to Magnate Finance’s suspicious activities.

That included the abrupt deletion of the group’s Telegram and X accounts. Their website also went offline before they pulled the plug on the $6.4 million in total value locked (TVL).

The latest rug-pull adds to a string of attacks to hit the DeFi ecosystem. Blockchain security reports have noted that the first six months of the year accounted for nearly $656 million worth of assets lost to hacks, phishing scams, and rug pulls.

Beosin recently narrowed that down to 108 attacks involving roughly $471 million, while phishing scams and 110 rug pulls saw a total of $108 million and $76 million lost in H1, 2023. In some cases, the money has been recovered – for instance Euler Finance’s $197 million.

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